The Challenges Of Retail Logistics Management

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The Challenges of Retail Logistics Management Senora N. Bradford Florida Institute of Technology MGT 5062 Professor: Dr. Essary The Challenges of Retail Logistics Management Introduction Consumers don’t realize the process and logistics it takes to provide goods and make them available for purchase. When we go to department stores and there is a surplus of goods, we as customers don’t fully understand how products were supplied or what demands are being met (Fernie and Sparks, 2009). With the rise of e-commerce and advances in technology, customers’ demands have changed and now they want their products quicker and complete availability. Customers want the ability to choose their delivery times, we are living in a time where…show more content…
Managing your logistics supply chain can become very expensive, if not controlled effectively. For example, holding stock or inventory for insurance purposes can be very expensive and the stock could be of value but loses its value when it does not sell or becomes obsolete. Operating and running warehouses and distribution centers are expensive considering the building, operation, and maintenance costs involved. A company’s distribution network can be expensive in terms of capital and running costs. It is pertinent that your logistics strategy is well thought out and aligns with the company’s goals and current demands of the market. A company’s logistics strategy must be carried out allocating resources effectively and efficiently to be competitive and successful. The Internet B2B Economy The advancement of technology is changing the way businesses execute their logistics strategy. Businesses are now forced to leave their traditional way of doing business and adopting new methods and processes as a result of the Information Technology Era. Information technology has made the competition fiercer than ever before the internet is opening up the door for more markets to take advantage of the benefits that IT has to offer which leads to the markets competing to lower their prices in order to steal market share (Impact of eCommerce in Today’s Business World, 2015). Just because a company is successful and one of the leading businesses in

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